Recapping the Majors
EUR/USD– After finally finding resistance at around the 3800 level, the Euro finally collapsed today as it took a massive 100+ pip drop against the Dollar today. The pair had been treading the 3800 mark for several days, showing extreme overbought conditions, and finally fell in today’s trading session.
Result: The Euro finally took a major collapse today as it dropped over 100 pips against the Dollar today.
GBP/USD- After reaching extreme highs against the Dollar, the Sterling finally took a spill today as it dropped over 100 pips from 2.0600 down to 2.0500. The Sterling has been in a stong upward rally for almost 2 months, making new 15 year highs on several occasions. Could this be the beginning of a strong collapse for the Sterling?
Result: The Sterling finally fell pretty good today as it dropped over 100 pips against the Dollar.
USD/CHF- The Dollar rallied nice against the Swissy today ever since it started to rise up from its support at the 2000 level. The Dollar rose over 100 pips today passed the 2100 mark and pierced 2150.
Result: The Dollar rose against the Swissy today and reached the 2150 mark after bouncing off of the 2000 support level earlier this week.
USD/JPY- The Dollar rose slightly against the Yen as it found support at the 120.00 mark and moved up to 120.50. The Dollar had been tumbling fast and hard the past 3 days until finally holding its ground today.
Result: The Dollar finally stopped the onslaught from the Yen and found support at 120.00 and moving up to 120.50.
Chart Analysis: What’s going to happen next?
The Euro finally took a plunge like I thought it would but today’s strong move could mean a retracement tomorrow or a continuation of the trend. The pair seems to have found support at the 3700 and although daily stochastics are trending down nicely now, 4hr stochastics are in oversold territory. If the pair can break below 3700 to around 3675, then I would watch for the Euro to continue down to at least 3650.
The Sterling is in a similar situation as the Euro. It’s fallen pretty hard today and we could see a retracement tomorrow or we could see a continuation. The Sterling has found support at the 2.0500 mark. If the pair can break below 2.0500 to around 2.0475 then I would expect it to at least go to 2.0450. If not, look for the Sterling to bounce back up to around 2.0550.
The Swissy has found slight resistance around 2150 which also happens to be right around its 50 EMA on the daily chart. Daily stochastics are trending up nice but 4hr stochastics are in overbought territory. I’m really not sure what to think here because the pair isn’t really providing any good opportunities for trades. My advice would be to sit out on this pair for tomorrow.
The Dollar found slight support at the 120.00 mark. Both 4hr and daily stochastics are in oversold territory which means we could see the pair head back up tomorrow. I also am more bullish than bearish on the pair since it fell hard for 3 straight days. Look for the pair to head back up to around the 121.00 mark.